Foreign Relations of the United States, 1949, The Far East and Australasia, Volume VII, Part 2

890.0146/7–2949

The Director of the Office of Far Eastern Affairs (Butterworth) to Mr. Robert R. West, Deputy to the Assistant Secretary of the Army

top secret

Washington, July 29, 1949.

Dear Bob: For some time we have been disturbed at the situation in the Ryukyus. We have felt that not sufficient action was being taken to implement in all its phases the applicable provisions in NSC 13/3, which recognize that this Government should seek to retain the facilities in the Ryukyus on a long-term basis and develop them accordingly. This policy also provided that “The United States agencies responsible for administering the above-mentioned islands should promptly formulate and carry out a program on a long-term basis for the economic and social well-being and, to the extent practicable, for the eventual reduction to a minimum of the deficit in the economy of the natives.”

Our concern has been increased lately due to the recent severe typhoon which caused serious and far reaching damage to Okinawa, as well as recent indications that all is not well among the native population. With respect to the latter point, you may have noticed the following passage from CINCFE’s weekly telegraphic report No. 42 of July 23:

“Resident CIC agent in Amami Oshima reports political situation northern Ryukyus growing steadily worse. Governor, vice-governor, and department heads provisional civil government reportedly have prepared resignations for submission to military government. Anti-US feeling in Naze reported to be increasing.”

As you probably are aware, the Department in May of this year sent Mr. Douglas L. Oliver, Adviser on Pacific Islands in this Office, to Japan and to the Ryukyus to make a general survey. As a result of the splendid cooperation Mr. Oliver received from the American military authorities in Japan and in the Ryukyus he was able to see and learn a great deal with respect to the problems confronting this Government in that area. He has now submitted a report which is a frank, straightforward statement of what he saw and his recommendations as to what can and should be done. I am enclosing a copy¹ for your personal information in the hope that you will find it possible to read it, notwithstanding its length. For reasons which will appear obvious to you upon reading the report, I suggest that it not be circulated widely and that for the present neither the report nor any excerpts from it be sent to Japan or the Ryukyus. After you have had an opportunity to read the report I should be glad to discuss with you appropriate means of implementing those of its recommendations which, after consideration between us, appear to be desirable.

However, it does seem almost self evident that Mr. Oliver’s recommendation that a new directive be issued regarding the Ryukyus is one that should be acted on promptly. I am therefore enclosing for your consideration a copy of a proposed new United States directive based on Mr. Oliver’s recommendations. It is believed that such a directive, setting forth United States policies for the Ryukyus in a single short document of low enough classification to reach all echelons of the Military Government would go far to meet the need for policy guidance in the Ryukyus and would provide a basis for steady progress.

Mr. Oliver’s recommendation that the NSC decision to “retain” the Ryukyus be reviewed, by exploring the possibilities of securing our strategic interests while returning the Islands to Japan, calls for careful consideration in view of its far reaching implications.

Your comments on this report and the proposed directive, as well as any suggestions you may wish to make with regard to how we may proceed in this important matter would be most appreciated.

Faithfully yours,

W. Walton Butterworth

[Enclosure]

Draft Prepared in the Department of State

confidential

[Washington, July 29, 1949.]

Draft Directive From the Joint Chiefs of Staff to Commander-in-Chief, Far East for Military Government of the Ryukyu Islands

1. Responsibility.

You are responsible for the exercise of United States military government in the Ryukyu Islands south of 29° North Latitude and for the execution in the course thereof of the policies of your Government as transmitted to you in this Directive and other official instructions.

2. Delegation of Authority.

You are authorized to delegate the exercise of military government in the Ryukyu Islands to a subordinate commander as Military Governor, and to issue to him such instructions consistent with this Directive and other instructions from your Government as may be appropriate.

3. General Policy.

It is the policy of the United States

a. to develop and maintain the facilities on the Ryukyu Islands as important on a long term basis to U.S. interests.

b. to develop and maintain a substantial degree of contentment among the civil population in order to contribute to the accomplishment of military objectives.

Military Government will be conducted on the assumption of long continued occupation, without prejudice to ultimate decisions with respect to sovereignty over the islands and their form of government.

4. Objectives of Military Government.

The conduct of military government in the Ryukyu Islands, in general, will further:

a. Economic and social well-being, accomplished to the maximum extent by the efforts of the Ryukyuans themselves, in order to insure civil tranquillity and to reduce to a minimum the deficit in the economy of the natives. Financial independence from other occupied areas will be achieved with due regard to the pre-war pattern of Ryukyuan trade and the most economic markets and sources of imports.

b. Broadening of the base of self-government through legislative, executive and judicial organs established in accordance with democratic principles, and the adoption of basic laws promulgated by elected representatives.

c. Execution of a cultural and educational program designed to foster development of the arts and sciences and an enlightened civic consciousness, with due regard for the predominantly Japanese character of the existing Ryukyuan culture.

5. Organization of Military Government.

You will insure that the organization established for the execution of his military government responsibilities by the Military Governor is adequate to the discharge of his military government reponsibilities and that such organization is under the immediate direction as his primary mission of either the Military Governor or a Deputy Military Governor of rank commensurate with his responsibilities.

6. Relationship of US Forces and civil population.

a. All decisions and orders governing the relationship of US Forces stationed in the Ryukyus to the local population and economy will be issued by or under the authority of the Military Governor with due regard for the objectives of military government as set forth in this Directive.

b. In view of the acute shortage of arable land to support the local economy, the occupancy of arable land by US Forces and the preclusion of such, land to the local population will be limited to that clearly necessary for US military objectives.

c. All echelons of US Forces stationed in the Ryukyus and their dependents will be indoctrinated with the necessity in the interest of the United States to foster a friendly attitude toward the United States on the part of the civil population and to avoid treating the civil population with disrespect or as inferiors.

7. Utilization of Ryukyuan Administrations.

To the maximum extent compatible with US objectives, military government will be indirect and will operate through Ryukyuan governmental authorities and administrations.

8. Basic Liberties.

The Ryukyuan people will be guaranteed the basic liberties of democratic countries, including freedom of speech, assembly, petition, religion and the press and security from unreasonable searches, seizures and detention without trial.

9. Civil Travel and Communications.

Subject to necessary regulations in the interest of military security and to availability of facilities, travel and communication to and from the Ryukyus and emigration will be freely allowed.

10. Economic and Fiscal Policy.

A coordinated long-range economic and fiscal plan for the Ryukyus will be developed in consultation with appropriate US departments and agencies and executed by the Military Governor, with the object of maximizing Ryukyuan self-support at a level of living appropriate to the achievement of military government objectives. It should include:

a) a program for developing on a long-range basis those Ryukyuan industries which can be sources of exports or reduce import requirements;

b) full and equitable compensation by US Forces and other US Government agencies stationed in the Islands for the contribution to their support of Ryukyuan labor and other economic resources;

c) such foreign trade controls, e.g., export-import licensing and exchange controls, as are appropriate in view of the relative merits of minimizing governmental controls to encourage free private trade, and the need to make most effective use of Ryukyuan resources;

d) measures designed to stabilize the financial structure of the economy, e.g., an adequate and equitable system of taxation to support necessary Ryukyuan governmental activities without recourse to deficit financing, a sound banking and currency system, and a single rate of exchange appropriate for all foreign transactions; and

e) establishment of a counterpart fund in the Ryukyuan budget reflecting the value of US aid (excluding pay-as-you-go) to the Ryukyus, control of which shall be exercised by the Military Governor with the objects of promoting economic development and fiscal stability.

11. Appropriations.

You will submit to the Department of the Army from time to time as requested estimates with justifications of appropriations from US funds for government and relief in the Ryukyu Islands and economic rehabilitation necessary to defray any deficit in the Ryukyuan economy and will be responsible for the expenditure under approved procedures of funds made available for such purposes.

12. Personnel.

a. Personnel for the administration of military government functions will be obtained as follows:

(1) Military personnel from the personnel assigned to you.

(2) Civilian personnel by requisition to the Department of the Army.

(3) Ryukyuan personnel by direct employment.

b. You will make special effort to insure that sufficient personnel having the experience and capacity necessary to the effective discharge of their responsibilities are obtained for military government of the Ryukyus, and to this end will request from higher authority such measures as you find needful.

13. Previous directives.

This Directive supersedes all previous Directives governing the military government of the Ryukyu Islands, except that you will be guided with respect to matters not covered by this Directive by the relevant provisions of JCS 1231 dated 12 January 1945.

1. Not printed.